PC Board's decision: government to sell its mineral sector assets

Reprioritising the privatisation proceeds, the Board of Privatisation Commission on Thursday approved sale of government assets in mineral sector.
The PC Board gave approval of privatisation of Pakistan Mineral Development Corporation's eight Salt and Coal Mines projects, which include Lakhra Coal Mines (District Jamshoro), Sor-Range Coal Mines (District Quetta), Degari Coal Mines (District Kalat), Sharigh Coal Mines (District Sibi), Khewara Salt Mines (District Jehlum), Warcha Salt Mines (District Khushab), Kalabagh Salt Mines (District Mianwali) and Jatta/Bahaddur Khel/Karak Salt Quarries (District Karak).
The Council of Common Interests (CCI) had already given approval for these transactions. The Board which met here under the chairmanship of Federal Minister of Privatisation Ghous Bux Khan Mahar was briefed about the upcoming Secondary Public Offering of Pakistan Petroleum Limited (PPL). The Board directed the PC to obtain approval of the transaction structure and other related issues for PPL from the Cabinet Committee on Privatisation (CCoP) and its offering should be planned accordingly.
The privatisation of SME Bank also came under discussion and it was decided that the transaction committee should review the status and reinitiate the process. The PC Board further decided to devise investment policy for PC Funds in accordance with the Finance Division's guidelines.
The meeting was informed that 10 potential parties had submitted Expressions of Interest (EOIs) and Statements of Qualification (SoQs) for the privatisation of National Power Company, which included Al Arrab Contracting Co, Saudi Arabia, Mansour Al Mosaid Co, Saudi Arabia, Saudi Cable Company, Saudi Arabia, Pergola Holding, Inc, Saudi Arabia, Durat Al Masana Est. for Trade, Saudi Arabia, IRINA TECH W.L.L (Pvt) Ltd, Bahrain, GS Engineering & Construction Corp Korea, Fatima Group of Companies, Pakistan, M. A. H Consortium, Pakistan Consortium of I) Mishal Sania (Pvt) Ltd, Pakistan; ii) Muhammad Ayub Shiekh and iii) Mrs Hummara Ayub and Lilley - SMADB (Joint Venture), Pakistan Consortium of I-Lilley International (Pvt) Limited, Pakistan and ii-Sardar Mohammad Ashraf D. Baluch (Pvt) Ltd, Pakistan (SMADB).
The PC Board directed the transaction committee to complete the due diligence process of the SoQ for finalising the pre-qualified bidders for NPCC. In the first four months of current fiscal year, the PC failed to generate any revenue through any privatisation. In budget 2011-12, the government set a target of Rs 70 billion to be raised through privatisation of government assets. If PC fails to achieve this target, the budget deficit will further swell, an economist said.